How does French inheritance tax work for UK heirs?

Reader Question: I understand that in France inheritance tax is not by the estate but by the people who inherit the estate. How does this work in practice if the inheritors live in the UK and are not subject to French tax? D.T.

Where a person lives in France, their whole estate is, as a general rule, liable to be assessed for French inheritance tax, and this will be worked out by the French notaire in charge of settling their affairs after their death.

He or she will confirm to each heir what tax is owing on their share and assist with organising the payment of this along with the declaration of the succession.

Double tax treaties also need to be consulted, where they exist.

Read more: How do I declare deceased husband’s pension for French taxes?

For example, in the case that the deceased, who lived in France, had a house and a bank account in both the UK and France, all their estate would be liable to French inheritance tax, but only real estate located in the UK would be subject to UK tax, said François Trémosa, a bilingual notaire from Ramonville-Saint-Agne, near Toulouse.

Typically, he said, in this case the notaire would work ‘hand in hand’ with a solicitor in the UK with regard to the UK-situated assets.

Any tax payable in the UK could be claimed against the French tax bill.

Otherwise, the tax owed by each beneficiary is worked out using the usual French inheritance tax allowances and bands, which vary depending on the relationship of the beneficiary to the deceased. 

The notaire makes the payment on behalf of the heirs.

A notaire almost always takes charge of settling the estate of a person who lives in France, unless their affairs are very simple and only small sums (up to a few thousand euros) are involved, and no real estate.

 Read more: French Justice Ministry: Why we consider 2021 inheritance law to be fair